Turkish Airlines net profit down 60% in 4Q2009: report

Turkish Airlines’ net profit reportedly fell 60% year-on-year to EUR97.1 million in the three months ended 31-Dec-2009, due to currency effects (Reuters, 01-Apr-2010). Full year net profit at Turkish Airlines is expected to fall from EUR640.5 million to EUR331.6 million. Details include:

Revenue: EUR956.7 million, +12.3% year-on-year;

EBITDA: EUR168.0 million, n/a;

EBITDAR: EUR220.7 million, +30.2%;

Net profit: EUR97.1 million, -59.6%.

*Based on the conversion ate at EUR1 = TRY2.02982

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A series of geopolitical events has weighed heavily on demand for air travel in Turkey, particularly in international travel. Weak trading conditions have also prompted the market leaders – national airline Turkish Airlines and LCC Pegasus – to halt their own rapid growth. Onur Air is bigger in the domestic market than it is in the international market, but much of its 2016 expansion was driven by international growth, particularly to Germany.

Onur's network faces strong competition on almost every route, particularly on international routes, and this has clearly posed a severe challenge in the face of falling demand.

Until 2014 Turkey was one of the most reliably fast-growing air traffic markets in Europe. In 2015 passenger numbers levelled off, and in 2016 traffic is set to decline. The impact of geopolitical events, including a series of terrorist attacks, the civil war in neighbouring Syria and the failed coup attempt in Jul-2016, has weighed heavily on demand for international travel to/from Turkey.

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